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DENVER, CO - The House today advanced a bill sponsored by Representatives Emily Sirota and Naquetta Ricks on a preliminary vote that would bring down costs for Coloradans by cracking down on ‘junk fees’.
“Coloradans are feeling the rising cost of living, and ubiquitous ‘junk fees’ that add hundreds of dollars in monthly costs are making it increasingly difficult for Coloradans to pay their bills,” said Rep. Emily Sirota, D-Denver. “Whatever the ‘junk fee’ is disguised as, the common goal is to hike up prices and drain money out of the pockets of hardworking Coloradans to increase corporate profits. Coloradans deserve better, which is why I’m proud to sponsor this bill to crack down on junk fees so consumers know the full price of the product, good, or property, including any mandatory fees.
“It is estimated that ‘junk fees’ add up to $90 billion per year in our country, costing households more than $650 annually that could be better spent on groceries, health care, and child care,” said Rep. Naquetta Ricks, D-Aurora. “These fees are often hidden until the consumer is getting ready to check out, or for renters, not disclosed until after they have already paid their non-refundable security deposit, forcing them into a higher monthly rent price than what was advertised. Tackling ‘junk fees’ has been one of my biggest priorities at the Capitol, and I am excited that we are one step closer to requiring companies to honestly price their products so Coloradans can make decisions that meet their needs and budget.”
HB25-1090 would improve transparency in pricing and save Coloradans money by:
Prohibiting pricing information for a good, service, or property being offered, displayed, or advertised unless the total price is disclosed, with the exception of a government or shipping charge, third-party fees, and utilities,
Prohibiting the misrepresentation of pricing information,
Requiring the nature or purpose of pricing information to be disclosed for a good, service, or property that is not part of the total price, and
Restricting fees landlords can charge for utilities and third-party services if they comply with legal limits, ensuring that tenants are not charged additional fees.
On January 15, the Federal Trade Commission (FTC) sent a letter to Governor Polis to provide information about the efforts they have made to address junk fees and called for the passage of legislation like HB25-1090, that works to combat these unforeseen costs. The FTC and the Colorado Attorney General have announced they are taking action against the nation’s largest multi-family rental property managers for using deceptive advertising and failing to disclose recurring fees.